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Discussion in 'Real Estate' started by Carolyn, 12th Oct, 2007.

  1. Carolyn

    Carolyn Member

    Joined:
    12th Oct, 2007
    Posts:
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    Location:
    Melbourne
    Hi there,
    This is the first time i've visited this site and as a mad keen property investor and a Property Manager (business owner), I wanted to see what it's all about. Am I able to discuss my services if someone was keen to know more?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Hi Carolyn, welcome to InvestEd.

    If someone asks you a question, feel free to answer - just don't go spamming by directly soliciting business or self-promoting.

    We love to hear from experienced property managers - I'm sure you can offer a lot to our members (and learn a lot from them too!).
     
  3. Carolyn

    Carolyn Member

    Joined:
    12th Oct, 2007
    Posts:
    5
    Location:
    Melbourne
    Warming up!

    Hi and thanks,
    Being new to this I am fumbling my way through it!! Once I'm warmed up, I am sure that it will be fun.
    Chat soon....
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi Carolyn

    Welcome on board. How about you tell us your "Top Ten Tips" for picking a good property manager? :D Or similarly for picking good tenants?

    Cheers
    N
     
  5. Carolyn

    Carolyn Member

    Joined:
    12th Oct, 2007
    Posts:
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    Location:
    Melbourne
    SOME TIPS ON SELECTING A GREAT PROPERTY MANAGER (RESIDENTIAL)

    THINGS TO LOOK FOR WHEN SELECTING A PROPERTY MANAGER

    Selecting a Property Manager is not an easy task. Often Property Management Departments have great Sales people or New Business Managers who promise the world and their teams fail to deliver. Don’t be fooled by the talk, do your homework and ask the right questions.


    EXPERIENCE

    • What kind of experience does the property manager have? (Not necessarily the length of time in the industry because you can be in a job for 20 years and still not be great at what you do. It’s about pro-activity and striving to be the best at all times.
    • Do they own property and/or investment properties themselves?
    • Have they been tenants and/or landlords themselves?

    QUALIFICATIONS

    • Are they members of the REIV or equivalent body?
    • Are they involved in any industry chapters etc? (REIV Property Management Chapter or the equivalent in other states?)
    • What kind of on-going development do they engage in? Conferences and other forms of training or courses?
    • Are they a licensed agent or an accredited REI property manager?

    CUSTOMER SERVICE

    Do the test yourself? Put yourself in the shoes of a tenant for a day……
    • Call as if you are a potential tenant and see what kind of service you receive. (do you want your Property Manager to deal with your potential tenants in this way)
    • Ask questions about a property that’s on the market and see if they are willing to assist you.
    • Ask if they are able to take you through on a ‘private appointment’ or do they only offer you the option of attending the scheduled inspection?
    • How long does it take for the property manager to call you back when you leave a message?
    • Does your property manager indicate on their voicemail message as to when you may expect to hear back from them?
    • How many properties does your Property Manager manage in their portfolio? What is the structure of their portfolio? Pod or portfolio system? What kind of support do they have?
    • Do they hand out keys to prospective tenants? (this is a dangerous practice and it is not recommended)

    TENANT SCREENING PROCESS
    • How are tenants selected and screened? This is absolutely vital. I have seen some tenants offered properties within the first two hours on a Monday morning. I would almost guarantee that their references were not checked. It’s virtually impossible to get the required amount of information within a couple of hours. It takes time to process and application and although we need to be quick to not lose great tenants to other agencies, we still have to be diligent. Ask your property manager for a copy of the ‘reference report’ that they’ve prepared if you don’t feel 100% sure that they’ve done thorough checks.
    • How does the Property Manager deal with applicants that have no rental history? What other types of checks have they done?

    CONDITION REPORTS

    • What type of condition report do they prepare? Is it extremely comprehensive or is it just a ‘tick sheet’ which will be virtually useless if you have to stand up at VCAT (or similar)
    • Are photographs done to accompany the report? (we do approx 200 per property)
    • If so, how many and how are they recorded?

    ROUTINE INSPECTIONS

    • How often are routine inspection reports carried out?
    • What type of report does the owner receive?
    • Do photos accompany the routine inspection report?
    • Do they do them when they promise they will, or do they just tell you they do to get your business?

    PRICE

    • Don’t select a Property Manager based on their fees. Select them on the service that they offer and pay whatever necessary to ensure you have the ‘best’ Property Manager possible
    • What are you really getting for your money?? Have you just bought yourself a ‘rent collector?’
    • If your property is vacant for a week or two weeks longer than if you had have gone with the pro-active agent who is 1 or 2 % more, would you not have been better off? (I see it all the time!!)
    • Don’t be fooled by an agent who over quotes!!
    • Do your own homework and research on the ‘rental value’ of your property. Be realistic though! It all comes down to comparable properties because tenants will shop around. Yes, the rental market is ‘tight’ in some areas but people are generally not silly and they will shop around to find value for their money.
    • Be realistic – an over-priced property can sit vacant for 4 -6 weeks and then you end up dropping the price anyway! It’s a false economy to allow this to happen.
    • A realistic price will get more people through the door. Getting people through the door may just help you to get the best price and the best tenant.
    • Sometimes the better tenant is the one at $5 less per week & will cost you less in the long run

    OTHER MISCELLANEOUS THINGS.

    • Passion!!! This is the big one. Does your property manager just have a job or are they absolutely passionate about giving the best possible service to their clients?
    • Ask for references from a number of landlords that are currently clients of your potential Property Manager. If people are ‘thrilled’ with the service they will be happy to give at least their email address.
    • Ask for copies of documents when new tenants are found. This is imperative if things go ‘pear shaped’. You need to have a copy of the in-going Condition Report, the lease document and the Bond Receipt. That way, if you need to change agents and they are ‘bitter’, you have the important documents that will be relied upon if there is a problem. You will also know that these documents were prepared at the commencement of the lease.

    GUT FEEL
    Never choose a Property Manager on ‘gut feel’ alone, but yes, it does count. Do you feel that you have 100% confidence in this person? Give it some thought because often, your gut feeling does count.
     
    Last edited by a moderator: 17th Oct, 2007
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
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    Location:
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    Fantastic post - thanks Carolyn !!!
     
  7. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    5 Star Carolyn!

    Some great tips.

    N.
     
  8. Chris.W

    Chris.W Member

    Joined:
    10th Oct, 2006
    Posts:
    17
    Location:
    Adelaide SA
    Thanks Carolyn.
    What state are you in?
     
  9. Carolyn

    Carolyn Member

    Joined:
    12th Oct, 2007
    Posts:
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    Location:
    Melbourne
    I am in Melbourne Chris. In the Bayside area. Do you have a property over here?
     
  10. Chris.W

    Chris.W Member

    Joined:
    10th Oct, 2006
    Posts:
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    Location:
    Adelaide SA
    Hi Carolyn,

    Unfortunately I am in Adelaide. But I sure if you give good advice on here you will soon get people wanting you to manage their properties.
     
  11. Carolyn

    Carolyn Member

    Joined:
    12th Oct, 2007
    Posts:
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    Location:
    Melbourne
    Thanks Chris!

    Thanks Chris, I am still trying to work out how to use this forum. Once I am more confident, I'll put more tips and information for investors.

    Carolyn